India is planning to build a transhipment port at South Bay on Great Nicobar island, a development that could be of both commercial and strategic significance to Southeast Asia as well as rival ports in Sri Lanka, reported The Straits Times.

The idea is to create a hub for shipping companies with spokes radiating to the eastern seaboard of India, Bangladesh, Myanmar and Thai ports on the Andaman Sea, a person familiar with the plans told The Straits Times.